Business, Management and Accounting
4 years ago

China's Legal Regime Outperforms India in Attracting Foreign Investment

Columbia Business Law Review
Comparing the Legal Foundations of Foreign Direct Investment in India and China: Law and the Rule of Law in the Indian Foreign Direct Investment Context
Rohit Sachdev

Paper Summary

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China attracts more foreign investment than India due to its more investor-friendly legal system. China's laws are clearer and more efficient, making it easier for foreign investors to navigate the process. India's outdated laws and complex approval procedures deter investment. China's disregard for the rule of law in political governance ironically benefits foreign investors by providing better legal protections and smoother approval processes.